Which Tax Applicable on Direct Sale

[NILESH PITALE]

Dear Expert

One of Our Client is Registered under Gujarat State and He has to sale the Goods to his Customer In Gujarat and he is also Registered under Gujarat. for Such transaction our Client is purchasing the Goods from Maharashtra state and Directly Dispatching the goods from Maharashtra to Gujarat - Under Such Case Which Tax should Levied from Gujarat to Gujarat sale.. Whether CGST/SGST Applicable or IGST Applicable

Please Guide

[Pradeep Reddy]

There will be two invoices in this case.

1. Invoice from vendor in MH to your client in Gujarat (IGST)

2. Invoice from your client in Gujarat to his customer in Gujarat ( CGST + SGST)

To enable direct delivery to customer in Gujarat, vendor can raise invoice on your client in Gujarat and ship to customer's location.

One may ensure that such bill to ship invoice is not handed over to customer and only your client's invoice is handed over to customer. This will avoid disclosure of your client's margin to the customer. 

Hope this clarifies

[KASTURI SETHI]

I  fully agree with the views of Sh.Pradeep Reddy Ji.

[Sadanand Bulbule]

Dear querist

Please also note:

1] It is pleased to note that CIBC after receiving number of representations for seeking clarifications in relation to requirement of e-Way Bill for “Bill To Ship To” model of supplies, considering the difficulty of trade & Industry issue a practical clarification with example by way of solution is in line of ease of doing business.

2] So experts have thoughtfully clarified the legal position on par with it and you may go accordingly.
 

[Shilpi Jain]

Invoice from u to your client in Gujarat would be cgst + sgst

[Padmanathan KV]

your supply is from Gujarat to Gujarat so, charge CGST and SGST.

[KALLESHAMURTHY MURTHY]

GST is a destination-based tax, i.e., the goods/services will be taxed at the place where they are consumed and not at the origin. So purchasing from one state and supplying to another state are different transactions. You have to avail of ITC under IGST but charge CGST & SGST on supplies made within the state.